Elon Musk sues OpenAI and Microsoft for $134 billion, early investors in a battle of interests with AI giants

According to the latest news, Elon Musk submitted documents to the court on January 17th local time, claiming to seek up to $134 billion in damages from OpenAI and its shareholder Microsoft, arguing that he is entitled to “unjust enrichment” resulting from his early support of OpenAI. This lawsuit involves complex issues of initial investment, human contributions, and profit sharing, and also reflects conflicts of interest during the rapid development of the AI industry.

Core Logic of the Claim

Musk’s Main Argument

According to the legal documents filed, Musk’s claim is based on the following facts:

• Contributed approximately $38 million, accounting for 60% of OpenAI’s initial seed funding
• Assisted in recruiting key employees
• Helped establish connections with founders and important figures
• Added credibility to the project during its early stages

Musk states in the documents that, just as early investors typically receive returns many times their initial investment, the benefits gained by OpenAI and Microsoft far exceed his initial input, and he now has the right to recover this “unjust enrichment.”

The Logic Behind the Numbers

The key to this lawsuit lies in how investment returns and contributions are measured. On the surface, a claim of $134 billion is over 3,500 times the initial investment. While this multiple seems exaggerated, it reflects the value created as OpenAI evolved from a startup into a global AI industry giant.

According to the latest news, OpenAI’s valuation has now reached hundreds of billions of dollars, and Microsoft has also gained significant commercial benefits from investing in OpenAI. Musk’s logic is that if his early investment and contributions helped shape OpenAI into what it is today, he should share in the corresponding value appreciation.

Background of the Event

The Development of OpenAI and Musk’s Changing Role

OpenAI was founded in 2015 as a non-profit AI research organization. Musk, as one of the co-founders, made significant contributions to the company’s early establishment and operations. However, as OpenAI gradually shifted toward commercialization—especially after the launch of ChatGPT, which quickly became a benchmark for AI applications worldwide—Musk’s relationship with OpenAI became more distant.

In 2024, Musk publicly criticized the company for its commercial shift and close cooperation with Microsoft. This lawsuit can be seen as a legal reflection of this deteriorating relationship.

Legal Basis for the Unjust Enrichment Claim

“Unjust enrichment” is a common legal claim used to recover benefits obtained through improper means. In this case, Musk claims that OpenAI and Microsoft gained benefits that rightfully belonged to him due to his early contributions.

The success of such a lawsuit depends on proving: a causal link between early contributions and later commercial success, and whether the relevant parties indeed received unjust enrichment.

Market and Industry Impact

Implications for the AI Industry

This lawsuit highlights a real issue in the rapid development of the AI industry: the protection of early investors and contributors’ rights. As AI company valuations soar, similar conflicts of interest may become more frequent.

For startups, this also serves as a reminder for founding teams and investors to clarify issues such as equity distribution, profit sharing, and intellectual property rights.

Possible Outcomes of the Lawsuit

According to the latest news, there are several possible outcomes:

• The court may find that Musk lacks legal grounds and dismiss the case
• Both parties might reach a settlement outside of court
• If Musk wins, it could set a precedent for other early investors to pursue similar lawsuits

Given the complexity and uncertainty of such cases, the probability of a complete victory is relatively low, but the lawsuit itself marks a rupture in Musk’s relationship with OpenAI.

Summary

Musk’s $134 billion claim reflects conflicts of interest amid the rapid growth of the AI industry. While this figure is staggering, the underlying question is whether early investors and contributors should share in the value created by the company’s subsequent success. The final outcome of this lawsuit remains to be seen, but it has already become a noteworthy case in the development of the AI industry and serves as a reminder for all parties in the entrepreneurial ecosystem to more clearly define their rights and interests.